Solutions

Residential Product Bulletin

1st Quarter 2021

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Overview

RCT Express® Product Bulletin Highlights

CoreLogic®monitors a wide variety of construction materials for the residential building industry. A few of this quarter’s highlights are:
  • From Q3 2020 to Q4 2020, the average for U.S. building materials increased 7.7%. For labor, the average wage rate increased 1.7%, based on construction trade contracts that were renewed during the quarter.
  • The average change for Canadian building materials was an increase of 9.2% over the quarter. Based on the construction trade contracts that were renewed during the quarter, the average labor wage rate increased 1.0%.

United States Canada
Quarter   Year    Quarter   Year   
Aluminum Conduit 2.1% 3.1% 0.1% 2.0%
Asphalt Shingles 0.4% 2.1% 0.1% 1.3%
Concrete Block 0.2% 2.2% 0.8% 2.5%
Drywall 0.2% 0.1% 0.4% 1.1%
Felt Paper 0.1% 0.7% 0.4% 3.4%
Galvanized Pipe 0.0% 1.6% 1.5% 6.0%
Lumber 35.4% 48.0% 62.7% 72.8%
Plywood 27.1% 32.5% 30.8% 28.9%
Ready Mix 1.8% 3.8% 3.0% 7.5%
Rebar 0.4% 1.2% -0.2% -1.5%
Steel Deck 0.5% 1.8% 1.3% 5.0%
Steel Stud 0.7% 2.1% 0.8% 3.8%
Structural Steel 0.7% -0.7% 0.1% 1.8%
1/2″ Copper Pipe 1.0% 0.1% 0.4% 3.6%

National Average

Residential Reconstruction Costs 4Q20 to 1Q21

Quarterly Variance
United States 3.46%
Canada 4.45%

About CoreLogic Data Research

To ensure that our clients receive the most current building material and labor costs, the CoreLogic data team continuously researches hard costs such as labor, material and equipment, including mark-ups. Our research also covers soft costs such as taxes and fringes for reconstruction work performed for the insurance industry in the United States and Canada. We monitor demographics and econometric statistics, government indicators, and localization requirements, including market trends from nearly 3,000 unique economies in the United States, and over 100 in Canada.

Other factors in this process include the following:

  • Wage rates for more than 85 union and non-union trades
  • Over 100,000 line items of construction data
  • Productivity rates and crew sizes
  • Local cost concerns, such as building code requirements and other localized variables

In addition, we validate cost data by analyzing field inspection records, contractor estimates, phone surveys and partial and full loss claim information. For more information, or for further explanation, please contact your sales consultant or account manager.

NOTE: The cost information in this bulletin is only intended to give you a general sense of reconstruction cost trends in North America. You should NOT advocate using these factors when adjusting renewal values for specific locations or across your book of business. Please note that the building material and labor cost trends presented in this bulletin are broad averages derived from our research of construction trades and building materials.

UNITED STATES

U.S. RCT Express® Cost Changes

The tables below provide a snapshot of the changes in reconstruction costs for residential buildings in the 4th quarter. From Q3 2020 to Q4 2020, the average for U.S. building materials increased by 7.7%. For labor, the average wage rate increased 1.7%, based on construction trade contracts that were renewed during the quarter.

CoreLogic monitors a wide variety of construction materials for the residential building industry. A snapshot of some of the most common material elements is listed below:

United States 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20
1/2″ Drywall -0.2% 0.0% 0.4% 0.4% -0.6% 0.0% 0.5% 0.2%
Asphalt Shingles 2.4% 0.7% 1.0% 0.4% 0.7% 0.5% 0.5% 0.4%
Romex Wire -2.4% -0.5% -1.6% -3.0% -1.1% -0.8% 1.2% 2.4%
1/2″ Plywood -6.9% -5.0% -4.5% -3.0% -1.9% 1.4% 4.7% 27.1%
2×4 Lumber -8.2% -5.7% -2.8% -1.0% 1.2% 3.3% 4.6% 35.4%
R-13 Fiber Batt Insulation 0.5% 1.6% 0.8% 1.7% 1.7% 2.6% 1.8% 1.7%
1/2″ Copper Pipe -0.5% 0.5% -1.0% -1.2% -0.1% -0.7% 0.0% 1.0%
Ready Mix 0.3% 2.3% 1.1% 0.7% 0.6% 0.9% 0.5% 1.8%
Felt Paper -0.1% -0.7% -0.1% 0.4% 0.1% 0.2% 0.3% 0.1%

United States Cost Variances by State

Residential Reconstruction Costs 4Q20 to 1Q21

State Quarterly Variance
Alabama 3.24%
Alaska 2.87%
Arizona 3.60%
Arkansas 4.84%
California 3.27%
Colorado 4.14%
Connecticut 2.88%
Delaware 2.62%
Florida 3.27%
Georgia 3.51%
Hawaii 2.85%
Idaho 3.19%
Illinois 3.23%
Indiana 3.60%
Iowa 4.09%
Kansas 3.79%
Kentucky 3.41%
Louisiana 3.60%
Maine 3.20%
Maryland 3.37%
Massachusetts 2.76%
Michigan 3.29%
Minnesota 3.87%
Mississippi 4.29%
Missouri 3.25%
Montana 3.32%
Nebraska 3.92%
Nevada 3.39%
New Hampshire 2.47%
New Jersey 1.89%
New Mexico 2.75%
New York 2.67%
North Carolina 3.29%
North Dakota 3.59%
Ohio 3.46%
Oklahoma 3.50%
Oregon 3.38%
Pennsylvania 3.25%
Rhode Island 3.62%
South Carolina 3.62%
South Dakota 3.92%
Tennessee 3.86%
Texas 3.58%
Utah 4.61%
Vermont 2.76%
Virginia 3.89%
Washington 3.84%
West Virginia 3.52%
Wisconsin 3.91%
Wyoming 4.19%
Q1 2021 Residential Product Bulletin English US

Canada

Canada RCT Express® Cost Changes

The tables below provide a snapshot of the changes in reconstruction costs for residential buildings in the 4th quarter. From Q3 2020 to Q4 2020, the average change for Canadian building materials was an increase of 9.2% over the quarter. For labor, the average wage rate increased 1.0% based on the construction trade contracts that were renewed during the quarter.

CoreLogic monitors a wide variety of construction materials for the residential building industry. A snapshot of some of the most common material elements is listed below:

Canada 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20
1/2″ Drywall 1.3% 2.7% 1.1% 0.4% 0.2% 0.3% 0.2% 0.4%
Asphalt Shingles 0.8% 1.0% 1.5% 1.9% 0.9% 0.2% 0.1% 0.1%
Romex Wire 0.7% -0.2% 0.6% -0.6% 0.0% 0.4% 0.6% 0.5%
1/2″ Plywood -4.4% -3.1% -3.2% -2.1% -1.4% -1.3% 1.3% 30.8%
2×4 Lumber -6.6% -5.9% -4.4% -2.4% 0.3% 2.0% 3.8% 62.7%
R-13 Fiber Batt Insulation 1.5% 1.5% 2.1% 2.3% 2.3% 1.7% 2.6% 1.9%
1/2″ Copper Pipe 2.2% 1.8% 0.4% 1.4% 1.7% 1.2% 0.4% 0.4%
Ready Mix 0.7% 2.5% 1.0% 0.8% 0.7% 2.1% 1.5% 3.0%
Felt Paper 0.6% 0.8% 1.3% 1.5% 1.2% 1.1% 0.6% 0.4%

Canada Cost Variances by Province

Residential Reconstruction Costs
4Q20 to 1Q21

Province Quarterly Variance
Alberta 4.16%
British Columbia 5.24%
Manitoba 4.25%
New Brunswick 6.14%
Newfoundland 5.27%
Northwest Territory 3.24%
Nova Scotia 5.74%
Ontario 3.58%
Prince Edward Is. 6.07%
Quebec 4.17%
Saskatchewan 5.04%
Yukon Territory 4.34%
Q1 2021 Residential Product Bulletin English CA

Whats New

Note: CoreLogic recommends a full program install whenever possible to ensure use of latest data and program enhancements.

Cost Data Changes: 

The 1st quarter 2021 cost data update reflects reconstruction cost changes in both labor and material for all versions of RCT. Standardized costs in this release reflect localized, updated costs representing the impact of emerging markets and economic trends on construction costs.

1.      USA Assumption Changes For Kitchens – RCT Express 4.x

  • Kitchen quality and count updated to 9-digit zip code granularity nationwide.

2.      Canada Assumption Changes – RCT Express 4.x

Note: The changes below are for Sherwood Park, Alberta, Postal Codes T8B1Ax-T8B1Nx only.

  • Exterior Walls – “Brick on Frame”
    1. Year Built 1970 – 1999
    2. All SF ranges
    3. 1 – 6 Family
  • Exterior Walls – “Brick on Frame” and “EIFS on Frame”
    1. Year Built 2000 – 9999
    2. All SF ranges
    3. 1 – 6 Family
  • Roof Cover – “Shakes, Wood”
    1. Year Built 1799 – 9999
    2. 1 – 100,000 SF
    3. 1 Family
  • Roof Shape – “Elaborate”
    1. Roof shape material upgraded from “Simple, Standard”
    2. Year Built 1799 – 9999
    3. 1 – 100,000 SF
    4. 1 Family
  • Garages & Carports – “Attached Garage, 1 Car”
    1. 1 – 1,600 SF
    2. Year Built 2000 – 9999
    3. 1 family
  • Garages & Carports – “Attached Garage, 2 Car”
    1. 1,601 – 2,000 SF (other postal codes with default 2 car garages have 1,601 – 10,000 range)
    2. Year Built 2000 – 9999
    3. 1 family
  • Garages & Carports – “Attached Garage, 3 Car”
    1. 2001 – 100,000 SF (other zips with default 3 car garages have 10,001 – 100,000 range)
    2. Year Built 2000 – 9999
    3. 1 family
  • Interior Extras – “Fireplace, Gas”
    1. 1 – 5 story
    2. Year Built 2000 – 9999
    3. 1 – 3,500 SF = 1 count
    4. 3,501 – 10,000 SF = 2 count
    5. 10,001 – 100,000 SF = 3 count
    6. 1 Family
  • Kitchen and Bathroom
    1. “Builder’s Grade” upgraded to “Custom”
    2. “Semi-Custom” upgraded to “Designer”
    3. Square foot ranges stay the same
    4. Year Built 1799 – 9999
    5. 1 Family

3.      New “Solar Roof Tiles” and “Solar Roof Tile Battery” Material Selections – RCT Express 4.x

NOTE:  These new material selections are not available for Mobile/Manufactured Homes.

  • “Solar Roof Tiles, 5 kWh”
  • “Solar Roof Tiles, 8 kWh”
  • “Solar Roof Tiles, 10 kWh”
  • “Solar Roof Tile Battery, 13 kWh”
  • “Solar Roof Tile Battery, 27 kWh”
  • “Solar Roof Tile Battery, 40 kWh”

4.      Mobile-Manufactured Housing, 2021 Historical Depreciation Tables – All versions of RCT

  • Each year as part of the first quarter update, the Mobile-Manufactured Housing Historical Depreciation table is updated to reflect changes to the year-built range which is now 1950 to 2022.

Non-Cost Data Changes:  RCT Express 4.x

1.      Graphic User Interface Drop Down List Changes For New Solar Roof Tiles/Batteries

NOTE:  No GUI changes were made for Mobile/Manufactured homes.

  • Solar Roof Tiles, 5 kWh” added to the “Roof Cover” drop down list.
  • Solar Roof Tiles, 8 kWh” added to the “Roof Cover” drop down list.
  • Solar Roof Tiles, 10 kWh” added to the “Roof Cover” drop down list.
  • “Solar Roof Tile Battery, 13 kWh” added to the “Roof Cover” drop down list.
  • “Solar Roof Tile Battery, 27 kWh” added to the “Roof Cover” drop down list.
  • “Solar Roof Tile Battery, 40 kWh” added to the “Roof Cover” drop down list.

2.      Updated Help Menu Files For The Solar Roof Tiles/Batteries Material Selections

  • Solar Roof Tiles, 5 kWh: Roof tiles used to generate electricity for the home and have a resemblance of 3-tab shingles or slate. The roof system is a building integrated photovoltaic product (BIPV) that combines elements and functionality of standard roof shingles with solar panels.

    Included in cost: Solar roof tiles, equipment for a 5-kWh system, roof felt, flashing, conduit and wiring, and installation labor. Note that this system supports direct consumption of energy and no batteries for storage. If batteries are present, the user can find the appropriate selection in the “Roof Cover” drop down menu. Optional selections include, “Solar Roof Tile Battery, 13kWh”, “Solar Roof Tile Battery, 27kWh”, and “Solar Roof Tile Battery, 40kWh”.

    Enter the percentage of the home with solar roof tile between 0 and 100.

    Note: Although the description below is for the 5 kWh system, the language in the help files is the same for the 8 kWh and 10 kWh systems with the exception of the system output (i.e., 8 kWh and 10 kWh).

  • Solar Roof Tile Battery, 13 kWh: Energy storage device for a solar roof tile roofing system. Battery is tied to the grid and contributes excess energy to the grid when full.

    Included in cost: Battery, wiring to grid, and installation labor.

    Enter the number of solar roof tile batteries between 0 and 10.

    Note: Although the description above is for the 13 kWh battery, the language in the help files is the same for the 27 kWh and 40 kWh batteries with the exception of the battery capacity (i.e., 27 kWh and 40 kWh).

Non-Cost Data Changes:  RCT High Value

  • There are no Non-Cost Data changes for 1Q21.

Non-Cost Data Changes:  RCT Mainstreet and Mobile/Manufactured Housing (MMH)

  • There are no Non-Cost Data changes for 1Q21.